Volatile oil price weighs on shares

On the HCM City Stock Exchange, the VN-Index lost over 7 points or 1.38 per cent after two days of rallying to close yesterday's session at 532.01 points. - Photo tinnhanhchungkhoan

Large-cap stocks like PV Gas (GAS), PetroVietnam Drilling and Wells Service Corp (PVD), Petrovietnam Transportation Corp (PVT), PetroVietnam Technical Services Corp (PVS), PetroVietnam Drilling Mud Co (PVC) and Petrovietnam Southern Gas Co (PGS) all declined between 2.2-4.2 per cent.

Volatile oil prices in the world market made investment in oil and gas stocks more risky in the short term, according to analysts. The global oil price tumbled 2.46 per cent yesterday, triggering selling of these stocks.

"Strong fluctuations in the past trading days indicate the volatile psychology among investors," said Pham Viet Hung, a Ha Noi-based independent analyst.

On the HCM City Stock Exchange, the VN-Index lost over 7 points or 1.38 per cent after two days of rallying to close yesterday's session at 532.01 points.

The VN30, which tracks the top 30 shares by market value and liquidity, also sank more than 1 per cent to finish at 585.19 points.

The market condition was negative as decliners outnumbered the gainers by 46-59 while the other 102 closed flat.

Upbeat on positive economic data like low annual inflation and higher-than-expected GDP growth, investors still increased their buys, lifting liquidity. Market volume increased 25 per cent over Wednesday to more than 89 million shares, while the value of trades rose 20 per cent to reach VND1.715 trillion (US$80.1 million).

FLC group (FLC) remained the most active stock toward the end of the session with 6.9 million shares, but the price slipped 2 per cent to settle at VND9,900 a share.

On the Ha Noi Stock Exchange, the HNX-Index also dropped 0.93 per cent to end at 82.05 points as losers doubled gainers.

Liquidity also improved with trading volume rising 10 per cent over the previous session, reaching 50 million shares worth nearly VND570 billion ($26.6 million).

PetroVietnam Construction Corp (PVX) was the most active here on trades of 4.7 million shares, plunging 8.2 per cent to end at VND4,500 a share.

Foreign investors again concluded yesterday as net buyers, although they bought only VND49 billion ($2.3 million) worth of shares in the two markets, half of Wednesday's total.